Economic Impact
Immigrants are essential to the U.S. economy, filling roles from high-skilled tech sectors to agricultural labor and driving economic growth. They also contribute to the tax base and consumer spending. We champion reform that will maximize this effect and create a more diverse and competitive workforce.
Back to the Future: The Impact of Legalization Then and Now
While there are many facets to an intelligent immigration reform package, one thing is clear: legalization for undocumented immigrants helps all of us. Most economists recognize that legalization has worked in the past. After a significant percentage of the undocumented population legalized under the Immigration Reform and Control Act of 1986 (IRCA), information on IRCA applicants was used to assess the legislation’s impact. My own research has shown that IRCA provided immediate direct benefits by successfully turning formerly clandestine workers into higher-paid employees. Other researchers have shown that IRCA provided unexpected indirect benefits to the communities where legalized immigrants resided. After legalization, fewer of these immigrants sent money back to their home countries, and those who sent back money sent back less. More of their earnings were spent in their communities in the United States. Research also showed that the legalized population became participating community members—nearly two out of five people who legalized under IRCA were U.S. citizens by 2001. What we learned from IRCA gives us a bird’s eye view into what we can expect to happen with a new legalization program. By examining three areas of concern: work, family, and community, we can see what economic and social benefits would be derived from a legalization program in 2013. By Sherrie A. Kossoudji, Ph.D. Read More
Economic Progress via Legalization: Lessons from the Last Legalization Program
The data analyzed in this report indicates that unauthorized immigrants who gained legal status in the 1980s through the legalization provisions of the Immigration Reform and Control Act (IRCA) experienced clear improvement in their socioeconomic situation. Between 1990 and 2006, the educational attainment of IRCA immigrants increased substantially, their poverty rates fell dramatically, and their home ownership rates improved tremendously. Moreover, their real wages rose, many of them moved into managerial positions, and the vast majority did not depend upon public assistance. The findings presented in this report support the notion that legalization of unauthorized immigrants can play a role in promoting economic growth and lessening socioeconomic disparities. Reforming our immigration system is not an obstacle to getting our economy back on track—it is part of the solution. Originally Published Nov. 5, 2009 Read More
President Lays Out His Vision For Immigration Reform
After eight Republican and Democratic senators yesterday released their framework for comprehensive immigration reform, President Obama laid out his administration’s vision today of what he thinks should be included in the bill to overhaul the nation’s immigration system. He praised the bipartisan principles, which mirror the White House’s 2011 blueprint for immigration reform. “At this moment, it looks like there’s a genuine desire to get this done soon,” he said in his speech from Nevada. “And that’s very encouraging.” Read More
Getting to a Citizenship Consensus
Immigration reform is enjoying a resurgence of support in both parties, with groups from a variety of backgrounds coming out in favor of a range of changes to our current system. The most striking change may be the melting of opposition to a pathway to citizenship for the 11 million undocumented immigrants in the U.S. But acceding to citizenship and creating a system that will actually allow people to get there are two different things. Read More
Business and Religious Leaders Come Together to Champion Immigration Reform
Immigration reform is an undertaking of such importance that it should transcend partisanship. That was the fundamental message of the business and religious leaders who gathered together yesterday at a press conference organized by the National Immigration Forum. The press conference was part of a campaign called Forging a New Consensus on Immigrants and America, which describes itself as “a growing and diverse constituency of conservative, moderate and progressive leaders that is determined to go beyond the rhetoric and find common ground for practical solutions.” The event comes on the heels of an announcement late last week by Thomas Donohue, President of the U.S. Chamber of Commerce, that a broad coalition of business, labor, religious, law enforcement, and ethnic organizations has coalesced around the cause of immigration reform. Read More
Immigrants Add Billions to the Arkansas Economy
A perennial question in the immigration debate is whether or not immigrants contribute more to the economy than they cost. That is, do they add more economically as workers, taxpayers, consumers, and entrepreneurs than they “consume” in public education, public healthcare, and public benefits? In some ways, this question is misleading. Education and healthcare are social investments that pay future dividends; they are not merely fiscal expenses. Nevertheless, it is a useful exercise to take the question at face value and do the math. The result, contrary to the convoluted arithmetic of anti-immigrant activists, is overwhelmingly positive. Immigrants add far more to the economy than they take away. And given the aging of the native-born population, the contributions of immigrants (and their children) will only increase over time. Read More
Illinois Legislature Votes to License all Drivers in the State
On Tuesday, the Illinois legislature passed a bill to allow state residents without legal status to obtain a three-year renewable driver’s license. The law will create tens if not hundreds of thousands of newly licensed drivers. The bill, which awaits the Governor’s promised signature, will make Illinois the third state after New Mexico and Washington to allow unauthorized immigrants to obtain driver’s licenses. (Utah allows undocumented immigrants to apply for driving privilege cards.) Read More
Reasons for Cautious Optimism on Immigration Reform
There is considerable debate at the moment over the prospects for immigration reform this year. On the one hand, an electorally chastened Republican Party seems to be reevaluating its long-standing support for deportation-only immigration policies. On the other hand, it looks as though the White House and Congress are embarking upon lengthy debates over gun control and tax-and-spending policies; debates which might leave little room for a rational discussion of U.S. immigration laws. Nevertheless, reports from the White House indicate that President Obama is ready to forge ahead on immigration reform. It remains to be seen, however, what form that will take. Will the President opt for a truly comprehensive solution, or will he adopt a more piecemeal type of reform that targets only some subsets of the immigrant population? Let us hope that the comprehensive approach prevails. The fates of millions of people have been hanging in the balance for far too long. Read More
DHS Publishes New Provisional Waiver to Help Some Families Stay Together
Some families facing long separations from their loved ones because of U.S. immigration laws will have an easier time of it in 2013. Thanks to a new regulation from the Department of Homeland Security (DHS), immediate relatives of U.S. citizens will be able to complete part of the processing of their immigration cases without leaving the country. The “Provisional Unlawful Presence Waiver of Inadmissibility for Certain Immediate Relatives” rule, often referred to as the new family unity rule, will be published tomorrow (January 3, 2013) and become effective on March 4. Read More
America’s Aging Crisis Will Only Grow Worse With Declining Immigration
As a recent story in The Economist notes, the conventional wisdom has long been that “because Americans have so many babies and welcome so many immigrants, they had more room to deal with the coming burden of pensions and health care for the elderly.” But that is no longer the case. The story goes on to point out that “the savage recession of 2007-09 and its aftermath…have weakened those demographic advantages. America’s fertility rate has been falling since 2007, as has net immigration.” In other words, there are going to be fewer working-age, tax-paying adults to support the rapidly growing number of elderly Americans. Read More
America's story is an immigrant story.